Hutch,
India's only MNC-led wireless service provider, continued to bolster its
presence in the Indian mobile services market in 2004-05. However, its pan-India
ambitions hit a roadblock with the termination of the MoU to acquire Aircel, and
some other regulatory issues. Hutch emerged as India's second largest mobile
operator in terms of revenue and fourth largest in terms of subscriber base
despite having operations in lesser number of circles than Bharti, BSNL and
Reliance.
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| CMD: Asim Ghosh |
| Area of Operation:
Mobile services |
Address: Hutchison Max Telecom Limited
Hutch House, Peninsula Corporate Park,
Ganpatrao Kadam Marg, Lower Parel,
Mumbai - 400013 |
| Phone: +91 22 56661229 |
| Fax: +91 56661241 |
| Website: www.hutch.co.in
www.orange.in |
|
|
|
| V&D
estimates |
CyberMedia
Research
|
|
| Highlights |
| • |
Hutch's subscriber base touched 7.79 million in 2004-05 registering a growth of 51 percent |
| • |
In revenue terms Hutch is second largest mobile operator in India |
| • |
Hutch has the highest average revenue per user
(ARPU) among mobile operators |
| • |
3 new circles launched in 2004, Aircel MOU terminated |
|
In 2004-05, Hutch consolidated all its operations in India under Hutchison
Max Telecom Private Limited. As part of its consolidation move, Hutchison Max
Telecom was made the holding company of all the cellular operations of the
Hutchison Essar Group. Besides Hutchison Telecom International, the Essar Group,
Kotak Mahindra, the Hinduja Group, and Max India are the shareholders. For long,
Hutch has been operating in India through different companies and affiliates. As
the company expects, the consolidation would help it create operating synergies,
including more efficient management and a more effective use of resources and
funds between the various operating companies. The consolidated company will be
better placed to access the debt and equity markets in India. Hutchison is
expected to launch its IPO.
Hutch has been a true value player both in terms of the quality of customers
that it owns and the kind of value-added services it offers. Hutch has been the
fastest among all operators when it comes to offering new technologies and
services. In 2004-05, the service provider was among the first to deploy EDGE
network and the first to offer TV on mobile services. All this has helped Hutch
to remain on top when it comes to ARPU. It is estimated that Hutch's ARPU
would be 20-22 percent higher than the national average and 13 percent more than
Bharti's ARPU. Hutch's consistently higher ARPU has created an impression
that the operator is focused on only high value customers. However, this may
only be partially true.
What is commendable about Hutch is that despite a regulatory environment that
does not favour a foreign investor much, Hutch has retained its faith in the
Indian market and has always shown long-term commitment.
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